Park electrochemical group to restructure operations in Europe

Citation

(2008), "Park electrochemical group to restructure operations in Europe", Circuit World, Vol. 34 No. 4. https://doi.org/10.1108/cw.2008.21734dab.012

Park electrochemical group to restructure operations in Europe

Article Type: Appointments From: Circuit World, Volume 34, Issue 4

Park Electrochemical Corp. (NYSE-PKE) announced that its Neltec Europe SAS and Neltec SA business units are proposing to restructure their operations and that, as a major component of such restructuring, Neltec Europe SAS, Park’s digital electronic materials business unit located in Mirebeau, France, is proposing to close completely its operations and has commenced an information and consultation process with its employees regarding the proposed closure in accordance with French law. Although Park intends to continue fully the operations of its Neltec SA RF/microwave electronic materials business unit located in Lannemezan, France, the proposed European restructuring does include a reorganization of certain of the activities of Neltec SA. Neltec Europe SAS is proposing to close fully its operations in response to the very serious erosion of the markets for digital electronic materials in Europe and the migration of such markets to Asia. The market for such products in Europe has eroded to the point where Park believes is not possible for the Neltec Europe SAS business to be viable.

If the closure of the Neltec Europe SAS operations is implemented as proposed, Park would plan to supply and fully support all existing customers of Neltec Europe SAS from Park’s electronic materials operations located in the USA. The proposed reorganization of certain of the activities of Neltec SA is not expected to affect Neltec SA’s service or ability to support its customers around the world. At this time, the proposed restructuring plans do not contemplate the loss of material amounts of business by Park.

In light of the proposed closure of the operations of Neltec Europe SAS, Ronald Brett has resumed his role as President of Neltec Europe SAS and Manuel Gonzalez has resumed his role as Manufacturing Director of Neltec Europe SAS.

If the proposed restructuring is implemented, Park would expect to record a one-time pre-tax charge of approximately $5-6 million in the third or fourth quarter of Park’s current fiscal year ending 1 March 2009 in connection with this matter, which charge would be comprised of the write-off of assets and the recognition of certain expenses. If the proposed closure of Neltec Europe SAS is implemented, the Neltec Europe SAS business would have no further impact on the consolidated financial condition or results of operations of Park and would be treated as a discontinued operation.

For further information, please visit the web site: www.parkelectro.com